Damn, the hangovers sure are a bitch, aren't they?
Oh, dear god, this party is going to end so, so, so badly.
Someone get the Tylenol...
It should perhaps be no surprise that given that the US Treasury Secretary was until recently head of one of the world’s most highly leveraged financial institutions. Leverage is king in the world of funny money promoted by Hank Paulson and the vastly overpaid glitterati of Goldman Sachs and its ilk.
But in all the hype about the record US$21 billion IPO of Industrial and Commercial Bank of China on the Shanghai and Hong Kong markets this month, almost no one has bothered to comment on what should surely by the most extraordinary aspect of the event, and one which is an alarming illustration of how successful the Wall Street masters of the universe have been in creating the monetary conditions which underwrite their own greed – and pave the way for future shock and awe for the rest of us.
This is just the same financial never-never land in which Enron grew up. That is not to suggest that the bosses at Goldman are dishonest in the way of Jeff Skilling. Crooks we always have with us. The lesson from Enron that has yet to be learned is that with or without fraud, massive leverage via opaque newfangled instruments is the danger. Collapse can be sparked as much by arrogance, stupidity or innocent ignorance as crookedry.
January 03, 2007
Ever have one of those nights where the liquor is flowing and all craziness is breaking out?
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4 comments:
Hey Keith you following the collapse and near collapse in the UK of some of the companies bought out by Leveraged buy outs or by (DEBT /BOND FUELED ) Private Equity ?
Music Zone today.
Top of the head, I recall that KwikSave and LittleChef are in severe trouble as well - days away from administration(bankruptcy).
These are the dogs of sectors of course: who the heck would want to run a retail CD, DVD store or a national discount supermarket in the days of Asda, ALDI or "transport cafe" restaurant chain when the Brits are becoming such Europhiles ?
The people who have been running these businesses as managers and fancied a chance of being proper owners that's who.
Fair enough, but which idiot would lend them the money, however high the interest rate to do the buyout ? Banks, that's who.
Its possible that these buyouts would work if they had the capital to invest. MusicZone had to get download stations going; Little Chef HAD to improve their menus.. but with crushing debt ratio, most of the money earned goes to service the debt - little gets invested.
We can expect more of these blowups here in the US too.
-K
"Ever have one of those nights where the liquor is flowing and all craziness is breaking out?"
Yes indeed! I just got back from Casey Serin's Christmas party. You remember Casey, of course. He's the famous 24 year old real estate investor from Sacramento CA.
Anyway, Casey's wife was there, along with Casey's two brothers and other family members. We had a kick-ass time. Some of the party pictures are on the WEBSITE now. Scroll down to December 29th, 2006 for the Holiday Pictures.
Unfortunately, the picture of Mrs. Serin is so blurred that she looks like a blow-up doll.
Casey says that he is "motivated and ready to hit the ground running." Run, Casey, run!
Happy New Year fellow HP freaks!
Mrs. S is pretty hot if you ax me. If that was supposed to be an insult against him, I don't get it.
______________________________________
Steps in persuading people you are smart:
Step 1: Use the word sheeple.
>>Someone get the Tylenol...<<
ANYTHING but THAT!!!
Tylenol + Alchohl = SERIOUS liver damage
As if a house note was not bad enough, you wanna add medical bills to the list?
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